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Importance and Functions of Production Planning & Control in Operations Management

Learn about the critical role of production planning and control in managing operations effectively. Topics include capacity planning, aggregate production planning, PERT/CPM, and more in this comprehensive guide.

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Importance and Functions of Production Planning & Control in Operations Management

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  1. MBA-Sem: II Sub: (C24) Operation ManagementUnit – III: Importance & Functions of Production Planning & Control by Prof. Rajkamal 9765900862 padmakars21@gmail.com

  2. Syllabus: Unit-III • Importance and Functions of Production Planning & Control • Introduction to PERT / CPM - Network Crashing (Numerical expected for PERT/CPM), • Capacity Planning: Concept and overview of aggregation demand and capacity options and strategies in production and services, capacity and value, financial impact of capacity decisions, aggregate planning types and procedure, capacity requirement planning, concepts of yields (productivity) and its impact on capacity. Padmakar S. - GWCET

  3. Functions of Production Planning & control : • Materials • Methods • Machines and equipments • Routing • Estimating • Loading and scheduling • Dispatching • Inspection • Evaluating and controlling Padmakar S. - GWCET

  4. Importance of control function: • Provide for the production of parts, assemblies and products of required quality & quantity at the required time • Co-ordinate, monitor and feedback to manufacturing management • Taking corrective action if necessary • Provide for optimum utilization of all resources • Achieve the broad objectives of low cost production and reliable customer services Padmakar S. - GWCET

  5. Aggregate Production (output) Planning: • Aggregate planning involves planning the best quantity to produce during time periods. • It determine the resource capacity a firm will need to meet its demand • Concept: • “Big picture” approach to planning • Objective of aggregate planning: • To balance conflicting objectives involving customer service, work force stability, cost and profit • To establish company-wide strategic plan for allocating resources • To develop an economic strategy to meet customer demand Padmakar S. - GWCET

  6. Input to & output from Aggregate planning: • Inputs: • Resources (work force/production rates, facilities & equipments), Demand forecast, Policy statements on workforce change, Subcontracting, Overtime, Inventory levels/changes, Back orders, Cost-inventory carrying cost, back order cost, hiring/layoff cost, overtime cost, inventory changes cost • Outputs: • Total cost of a plan, Projected levels of inventory, output, employment, subcontracting and back ordering Padmakar S. - GWCET

  7. Importance of Aggregate Plan: • Engineering • Materials • Operations • Marketing and distribution • Accounting and finance • Human resource • Normal or rated capacity • Actual or utilized capacity Padmakar S. - GWCET

  8. Capacity requirement planning (CRP): • Types of Capacity • Fixed capacity • Adjustable capacity • Design capacity • System capacity • Potential capacity • Immediate capacity • Effective capacity Padmakar S. - GWCET

  9. Thanks for paying attention …… Padmakar S. - GWCET

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